INDUSTRY NEWS
July 1997

 

RVIA Suspends Dealer Relations Activities Pending Response from RVDA

RVIA will suspend its involvement in the RVIA/RVDA Manufacturer/Dealer Joint Task Force until RVDA implements a written policy acceptable to both associations. The board took action on recommendations by the Manufacturer/Dealer Relations Committee, including issuing a formal request to RVDA to produce a written policy statement citing when it will provide active support to state dealer organizations seeking legislation concerning franchise and lemon law issues.

RVIA asked that the statement identify specific legislative provisions RVDA will or will not support, as well as a communications process which is to be exhausted prior to RVDA giving support to legislation.

The board also instructed that a document outlining ways dealers and manufacturers can communicate for the purpose of avoiding legislation without violating anti-trust laws be developed. This would be shared with RVDA and state dealer associations.

 

Ray Hunt Dies of Heart Attack

The RV industry was shocked and saddened by the news that 36-year-old Ray Hunt, Jr., president of WheelMasters, died suddenly in June. According to Hal Funk, general manager of WheelMasters, Ray had been playing basketball with friends when he collapsed. The cause of death was attributed to a heart attack.

Ray was the son of Joyce and stepson of Tony Patti, founders of WheelMasters.

A special scholarship has been set up as a memorial to Hunt, and those who would like to make a donation should send contributions to the following address:

Ray Hunt Youth Sports Scholarship Fund
Acct#: 912 601 5115
c/o U.S. Bank
North Hills Branch
Reno, NV 89506

 

Rick Horsey Elected Chairman RVDA

The RVDA board of directors elected its officers for 1997-1998 and named Rick Horsey, Parkview RV Center, Smyrna, DE, Chairman. Other officers elected are: First Vice Chairman, Cammy Goetz, Curtis Trailers, Portland OR; Second Vice Chairman, Ron Barrows, Modern Trailer Sales & Service, Osseo, MN; Treasurer, Mark Bretz, Bretz RV & Marine, Missoula, MT; Secretary, Randy Biles, Pikes Peak Traveland, Colorado Springs, CO; Immediate Past Chairman, Jim Fogdall, Ace Fogdall, Inc., Cedar Falls, IA. The officers will serve one-year terms beginning in September.

The committee also nominated the following dealers to serve as regional directors: Region 1, Jeff Hirsch, Campers Inn of Kingston, Kingston, NH; Region 3, Earl Stoltzfus, Stoltzfus RV & Marine, West Chester, PA; Region 5, Martin Zonnenberg, Camping Time, Oakwood, GA; Region 7, Bruce Bentz, Capital RV Center, Bismarck, ND; Region 9 (renomination) Steve Bell, Bell Camper Sales, Bartlesville, OK; Region 10, Craig Jensen, Blaine Jensen RV Center, Kaysville, UT.

Additional nominees for regional directors may be proposed. Members in good standing who receive the support of at least two percent of the regular members (18 members) shall be placed in nomination. All nominations should be forwarded to RVDA president Mike Molino no later than August 17, 1997.

 

In other actions, the RVDA board:

•Approved a one-time $12,500 contribution to the Elkhart-based RV/MH Museum with the understanding that in the future RVDA will provide gifts "in kind" such as publicity for fund-raisers. RVDA will also assist the museum in finding ongoing sources of revenue to support its work. Combined with a $37,500 contribution from RVIA, the RV industry will contribute a total of $50,000 to the museum in 1997 allowing the organization to receive a matching grant of $50,000 from the Manufactured Housing Institute.

•Approved a recommendation from the Government Affairs Committee to include non-

member dealers in the annual Dealer Satisfaction Index Survey.

•Reaffirmed the 46 unit limitation on vehicle displays at the Convention/Expo.

•Approved a recommendation from the Member Programs & Services Committee for development of a separate endorsement logo for association endorsed products and services.

 

RVIA Continues to Subsidize Affinity’s Roads to Adventures Magazine

RVIA will repeat the program in which RVIA partners with TL Enterprises to distribute 350,000 copies of Roads to Adventure to attendees of RV consumer shows. Roads to Adventure is an Affinity Group publication.

 

RVDA Education Foundation to Offer New Sales Training Program

The RVDA Education Foundation will offer sales training programs on CD-ROM later this year.

The program, developed by the nationally-recognized training firm Wilson Learning, covers basic selling principles and will be available to RVDA members at a special price — less than $50 for a CD-ROM program and $25 for each salesperson’s workbook.

The Wilson Learning assessment and measurement approach to sales training focuses on sales performance, customer satisfaction, team sales performance, and other important selling areas. The interactive CD-ROM format helps salespeople learn and retain more information. The CD-ROM programs are accompanied by manuals and instructor’s guides for use inside the dealership or at home.

"CD-ROMs allow salespeople to learn at their own pace," said RVDA Education Foundation board member Rick Horsey. "This program also enables dealers to evaluate the progress their people are making in the training program." This is a cost-effective program, especially for smaller dealers looking for top-notch sales training. Many dealers and salespeople already own computers with a CD-ROM drive. Those who don’t can get a professional training program for less than $2,000 for the computer, the sales CDS, and workbooks.

The RVDA Education Foundation approved the training program at its meeting on June 9.

 

Harriet Rouse Succumbs to Cancer

Harriet Rouse, who occupied the co-pilot seat with her husband Art at the helm of Trailer Life Publications and the Good Sam Club for more than three decades, died June 13 after an extended and courageous battle with cancer. She was 77.

Back in 1958 when Art first took over the magazine from the founding Trailer Coach Association, Harriet left the comfort of home to become TL’s clerk, bookkeeper, typist, and receptionist by day, while remaining housewife and mother at night.

First known simply as "Mrs. R" in Art’s regular columns and articles in which he chronicled their passion for life on Wheels, Harriet’s sobriquet eventually became "Mrs. RV," as their fame grew as powerful advocates for millions of RV enthusiasts around the world.

In addition to her husband, Harriet is survived by her two sons, Dennis and Rick and daughters Lora Kerman and Iby Rouse, and eight grandchildren.

 

RVIA Approves New Public Relations Programs

The RVIA board approved a comprehensive Market Expansion and Reinforcement Program to be executed by Barton-Gianelli & Associates as recommended by the Public Relations Commit-tee.

This includes the continuation of the Top of Mind Awareness Program; the "Camping & Kids" Tour; National RV History Tour; "Freewheelin’ USA" Tour; "First We Quit Our Jobs" Tour; the Fountain of Youth Tour; conversion vehicle media relations and two video news releases.

The board also allocated funding to support grass-roots RV consumer education by providing RV literature to existing community college programs. RVIA will also provide funding to help RV education program developers launch additional community college programs.

RVIA will develop a web site as a source of industry information for media and consumers. In other on-line action, the association will supply information and research to the Investext Industry Insider database for security analysts to access.

 

In Other Actions the RVIA board:

• Increased RVIA’s funding of the American Recreation Coalition (ARC) from $100,000 to $125,000 in.

• Selected the Sheraton Grande Tory Pines in San Diego to host the 2000 Annual Meeting.

• Authorized the continuation of RVIA’s Survey of Lenders’ Experiences.

• Approved the establishment of criteria for RV service centers and development of a process for meeting those centers that meet these criteria.

• Instructed staff to develop communication aimed at educating supplier members about potential exposure faced by new lemon laws.

• Asked staff to explore methods for reporting sales of conversion vehicles on a monthly basis.

• Supported the development of a brochure promoting the benefits of van conversion ownership to consumers.

 

ARVC Opens Western Office -- Linderman to Head Member Services

Longtime campground industry executive Rob Linderman has been named the National Association of RV Parks & Campgrounds’ ( ARVC) manager of member development and services and the head of ARVC’s new West Coast office. Linderman will be based in the Seattle area and will be responsible for all ARVC member benefit programs, the creation of new programs, member relations and new member development either directly or via affiliated state associations.

Linderman is currently the chief operating officer of American Adventure, a network of 12 RV resorts in the West.

 

RV America’s Chat Room Grows in Popularity

If you drop by RV America On Line’s chat room almost any evening you are going to meet people such as Dick from San Diego, Skip from North Carolina, Reno from Montana, Buck from Florida and more than likely, Curt, an American Army pilot stationed in Panama, and his wife, Sherry. They are all there talking about their RVs or dreams of RVing. "It’s like a growing family," said Dan Holt, CEO of Web Site Management, the parent company of RV America. "They all congregate in the chat room to discuss RVs and exchange ideas and opinions, and the circle of participants widens almost nightly."

In addition to the informal chat sessions, RV America has a regular schedule of Special Events that include people like John Anderson, "A’Weigh We Go," who answers questions about weight and safety issues. Then, RVIA-RVDA master certified technician Rodney Simmons, owner of Blue Moon Mobile RV in Garland, TX, hosts a question and answer session the second Thursday every month and fields questions relating to RV service, repair and maintenance.

RV America recently upgraded its’ chat software to ichat, the leading chat program used on the Internet and used by such companies as Yahoo and others.

Holt said, "Visitors to RV America want all the information about RVs and RVing they can get. We plan to expand the special events segment of the chat room and invite industry professionals to participate and meet the RVing public that have incorporated the Internet as part of their RV experience."

 

Pennsylvania RV Show Drawing Biggest Ever

The Pennsylvania RV and Camping Association (PRVCA) show committee chairman, Larry Mellot, reports the association’s Fall show is the largest ever — the show will be over 660,000 square feet with over 14 acres under roof. This year the increase was well over 50,000 square feet purchased by exhibitors. A waiting list exists for manufacturer space and a significant increase in suppliers has created a "sold out" situation in all but one category.

The Pennsylvania RV & Camping Show Trade Days are September 8 and 9. The public days are September 10 - 14, 1997. An example of the Trade Days educational offerings will be seminars such as "Increasing Your Profits, No Matter What Competition You Face," "Park Trailer Demographics," and "Towing Systems" plus much more. Johnny Bench, television broadcaster and baseball superstar will be the keynote speaker at the annual Red Carpet Breakfast.

For more information call 1-800-732-2226.

 Good News – Americans Expected to Travel More This Summer

According to a survey released recently by the Travel Industry Association (TIA), vacationers plan to see more and spend more this summer, encouraged by lower gasoline prices and confidence about their finances.

Americans will take 230 million trips of at least 100 miles from June through August, up 2 percent from last year’s record, TIA predicted in its annual forecast.

A quarter of those surveyed said they’ll travel more than last summer, compared with 11 percent who plan to travel less. The 18 to 24-year-olds show the most enthusiasm, with 43 percent planning more trips.

On average, respondents expect to pay $1,112 on their longest trip, up from $1,076 last year. But the length of that trip fell to an average of 8.1 nights from 8.5 nights last year.

Florida, California and Hawaii were picked as the favorite U.S. destinations for the fifth year in a row. Nevada and New York tied for fourth place in the top 10 ranking, followed by Colorado, Arizona, Texas, Washington, D.C., and Alaska.

Air travel will grow 3 percent this summer to 33.9 million trips of 100 miles or more, the survey said. Travel by car, truck or RV will rise 1 percent to 188.6 million trips.

Gasoline costs about 7 cents per gallon less than last year, when a near-record surge in prices during the spring put the national average at $1.31 a gallon, according to AAA. Nevertheless, other travel costs such as lodging and meals will be slightly higher, especially in metropolitan areas. The AAA estimates those costs at $199 a day, up from $193 last year.

But people don’t appear to be shying away from the more expensive destinations like Hawaii and New York, a sign that the strong economy is making people more willing to spend.

 

Forecast

RVIA Analyst Predicts RV Shipments Should Gain 1.9 Percent This Year

Writing in roadsigns, RVIA’s quarterly economic forecast for the RV industry, economist John W. DeWolf, said, "The economy showed a burst of energy in the first quarter that we don’t think is sustainable. This carried over to RV shipments, which were up 10%. We look for shipments to come back down to a rate of about 250,000 (or just below) for the rest of the year and into the first half of 1998. This will still have shipments for the year up 1.9% from 1996 at just over 252,000 units."

He indicated that towables will account for all the gain in shipments in 1997 - and probably also in 1998. He added, "We see shipments of towables gaining 4.5% for the year to just over 200,000 units. Biggest gainer should be fifth-wheel travel trailers, up better than 7%. Folding camping trailers should also do well, climbing 3.1% in 1997. At this time, it looks as though towables will continue to gain through 1998 – up perhaps 2 – while motorhomes should hold even.

 

ARVC Adopts New Policy on Public Land Usage

The board of directors of the National Association of RV Parks & Campgrounds (ARVC) has approved modifications to the association’s longstanding policy on public lands and campgrounds. The updated policy recognizes the wide diversity of campers among the nation’s 60 million people who go camping and carves out a niche for public sector campgrounds. Citing definitions in the American National Standards Institute A119.4 standard for RV parks and campgrounds, the new policy accepts the public sector’s role in providing semi-developed or rustic camping facilities. It also recognizes the need to provide high levels of customer service in all camping experiences to encourage growth in camping.

The new policy was developed by a task force comprised of state delegates to the recent ARVC Government Affairs Conference. The task force held a day long "hearing’ on the issue and developed the new policy based on input from a wide range of sources.

 

Distributors Report

Aftermarket Sales Soft So Far in 1997

In an informal survey of warehouse distributors in June, RV News learned that aftermarket sales have been down during the first half of 1997. Mike Keller, president of Keller RV and Marine told RV News, "We’re down from last year. We are selling now the types of items we normally sell in April. We have had awful weather this year and the camping season never started, but hopefully it’s starting now. Keller primarily serves dealers in the northeastern U.S.

Stan Sunshine, president of StagParkway, described his company’s business as being "sluggish." StagParkway is a national RV warehouse distributor.

Jeff Wannamaker, president of Coast Distribution, another national distributor said business has been off all across the country.

Coast is also the only public company among those questioned. First quarter results showed that Coast is down 6% over what they were in the first quarter of 1996.

Tim McGuire, Coast’s CEO told shareholders, "In the seasonally weak first quarter ending March 31, 1997 our company’s net sales were $35,205,000, 6% less than the first quarter of 1996. A net loss of $92,000, or $0.02 per share, was incurred as compared to net income of $763,000, or $0.15 per share in the same quarter of 1996.

"The company’s results continue to be affected by 1) the loss of a primary supplier in early 1996 and the subsequent transitioning of our customers to our new product lines, 2) our transition to more company-branded products, and 3) soft sales of recreational vehicles and boats."

Despite the challenges, McGuire remains optimistic about the company’s prospects for the future. He continued, "As we move forward, we believe the business is getting stronger, however, we do not expect the year-to-year comparisons to become positive until the third quarter. In addition, we have implemented several cost cutting strategies that have enabled us to reduce our inventories by $9,000,000 and the square footage in our warehouses by 150,000 square feet while at the same time providing improved productivity and fill-rate to our customers."

 

RVIA’s Annual RV Industry Statistical Report Available

RVIA’s annual RV industry statistical report, Profile, The RV Industry 1996, was recently published. This annual publication has been compiled from surveys of RV manufacturers and highlights RV shipment activity covering the past ten years with emphasis on the year 1996.

Product mix, regional, and state-by-state sales patterns, and wholesale and retail values are detailed for the ten RV product categories in numeric as well as graphic presentations. Separ-ate sections highlight towables, motorhomes and conversion vehicles. An appendix contains RV shipments compared to well-known economic indicators and a tabular display detailing RV production by state.

Again this year, RVIA has included a state-by-state breakout of retail sales for van conversions. This data, collated by R.L. Polk and Statistical Surveys, Inc., highlights market shares of newly registered van chassis most likely to be converted.

Also, in a separate section highlighting the RV consumer the publication presents a summary of future sales potential represented by changing demographics as identified by recent market research. This analysis will guide the reader through some of the more positive aspects of RV buyer demographics and their anticipated effects on future sales.

Copies are available from RVIA for $21.50 including shipping and handling. Call RVIA at: 703-620-0003.

 

RV/MH Heritage Foundation Plans Gala Event to Celebrate 25th Anniversary

New Inductees Named

The board of directors of the RV/MH Heritage Foundation has announced the election of a special class of inductees into the RV/MH Hall of Fame. This class, elected as part of the celebration of 25 years of the RV/MH Hall of Fame, will be inducted at a Silver Anniversary Celebration Dinner in Elkhart, IN, on Wednesday, August 6. 1997.

The special class of inductees include Ermon and Roy Beck, founders of Beck Corp., Elkhart; Frank Gotta, president, Attog Corp., Springfield, MA; David J. Humphreys, president RVIA, Reston, VA; Ted G. Kaplan, CEO, Stag-Parkway, Atlanta, GA; Philip Lux, retired president, Coachmen Industries, Elkhart; Dan Pocapalia, chairman, Kit Manufacturing Co. Long Beach, CA; Nicholas J. St. George, president, Oakwood Homes, Greensboro, NC; and Elden E. Smith, soon-to-be-retired senior vice president, Fleet-wood Enterprises, Riverside, CA.

The Silver Anniversary celebration for the RV/MH Hall of Fame will include two days of activities on August 6 and 7, 1997.

 

Uniroyal Adhesives & Sealants Division Acquires Illinois Firm

According to James T. Elgin, vice president & general manager of the Adhesives & Sealants Division of Uniroyal Technology Corporation, arrangements for a stock purchase plan of the C. Gunther Company of Cary, IL, distributor of quality mirror mastics for professional mirror applications, were completed on March 31st of this year. The Gunther Mirror Mastics operation will be moved into the newly renovated 240,000-square-foot plant, office and research and development facility of the Uniroyal Adhesives & Sealants Division. This Division of Uniroyal Technology Corporation manufactures adhesives, sealants and coatings for the building product, transportation and furniture industries.

 

Deutsche Financial Services Completes Acquisition of Ganis

Deutsche Financial Services (DFS), a provider of inventory financing to the RV industry, has completed its acquisition of Ganis Credit Corp. (Ganis) from BankBoston Corp.

In conjunction with the announcement, DFS — through the facilities of Ganis — will begin offering retail financing programs to the RV industry.

Roger Kirwan will continue as president of Ganis. He will report to DFS president and CEO Bob Martin.

 

Barth Under New Ownership & Management

Barth RSV, Inc., a manufacturer of recreational and specialized vehicles, is under new ownership and management. The company was purchased by V. Richard Miller and Nammy K. Eskar. Eskar holds the office of president and chief executive officer.

A former Indiana state senator, Miller is currently the chief executive officer and director of finance and development for MMM-Invest, Inc. He was elected to the Indiana State Senate in 1976 and served until 1988.

Prior to joining Barth, Eskar was employed by Geo. S. Olive & Company, a management consulting firm in Indianapolis, IN.

 

Senator Frank Murkowski Named Sheldon Coleman Award Winner

U.S. Senator Frank Murkowski (R-AK), one of the Senate’s leading champions of recreation issues, has been named as the recipient of the ninth Sheldon Coleman Great Outdoors Award.

Sen. Murkowski was presented the award at the Great Outdoors Award Celebration in June in Washington, D.C. The ceremony was the highlight of Great Outdoors Week, taking place from June 9-13. Both Great Outdoors Week and the award are sponsored by the American Recreation Coalition (ARC).

Sen. Murkowski was honored for his energetic leadership to create a national recreation lakes system study and his ambitious, new recreation initiative that offers creative solutions to ensure Americans will continue to enjoy quality outdoor recreation opportunities.

The Sheldon Coleman Award was named in honor of the late conservationist and founder of the Coleman Company. It recognizes individuals who have demonstrated outstanding efforts to sustain and enhance America’s outdoor legacy.

 

Manufacturer and Park Trailer Booth Space Sold Out for Louisville Show

The RV and park trailer manufacturer exhibit space is sold out at this year’s Louisville show. Due to the time it takes to prepare the vehicle exhibit layout, RV and park trailer manufacturers were sent the space offering in March. Over 600,000 square feet of RV and park trailer manufacturer space has been allocated.

 

Dealers Use Direct Mail to Sell Accessories and Bring Customers to Dealership

More and more RV dealers are taking advantage of direct mail to bolster business and stay in contact with their customers, according to Dan Holt, publisher of RV News. Holt administers the publishing side of the bi-monthly Coast Specials flyer that appears in every issue of RV News. Holt works with dealers to customize the flyer for their dealers and help them plan their mailings.

The direct mail flyer program, a cooperative effort between Coast Distribution and RV News, is growing in popularity among RV dealers. Last month dealers ordered over 65,000 flyers.

Holt said, "It must be working. Some of the dealers that signed up for a one-time mailing earlier in the year are coming back and doing it again. One dealership found it worked so well they have signed up for the rest of the year. If it wasn’t profitable, they’d not be doing that."

The flyer is eight pages with seven of those pages devoted to four-color ads for items Coast has made available as specials that month. The dealer can order reprints of the flyer to send to their customer lists. The back page of the flyer is designed for the dealer’s personalized message or additional specials he might choose to offer and the front cover has an area for the dealer’s logo banner.

Holt added, "It’s getting very difficult for dealers to compete effectively with mega-stores, mass merchandisers and companies that have millions of dollars to spend on advertising and direct mail programs. This program was designed to help dealers compete. It gives them an impressive four-color brochure filled with cost saving specials that the consumer can buy at their dealers’ aftermarket stores — an incentive for them to visit the dealership."

Holt also pointed out that it’s extremely inexpensive considering the quality of the finished mailing piece. Holt said, "Since we print all the four-color flyers at one time, there’s an economy of scale that is passed on to the dealer – the more dealers that participate the lower the cost. Then we simply run the flyers through a one-color press again to customize each set of flyers for each dealer. It’s available at only a fraction of what a dealer would pay if he were to undertake the printing locally.

"It’s one of those programs that works for everyone equally well – it’s a real win-win-win program."

 Western RV Selected to the Washington CEO Magazine’s Private 100 List for 1997

Arthur Andersen, U.S. Bank and Washington CEO magazine announced that Western Recreational Vehicles, Inc., Yakima, WA, was named to the Washington Private 150 list for 1997.

WRV was recognized with the other Private 150 companies in a special section in the May issue of Washington CEO magazine.

 Marshall Gas Releases Catalog on CD-ROM

Marshall Gas Controls, a Division of S.H. Leggitt Com-pany, recently released their full-line catalog on CD-ROM. In addition to the catalog, the CD features black and white line art and full-color digital photography of Marshall Gas’ most popular products.

"This new CD was designed to meet the diverse needs of our customers," says Randy Wheaton, director of sales and marketing. "Our customers now have the flexibility to include line art or photographic images of our products in their own catalog or product brochures."

The CD is compatible with Macintosh, Window 3.1 and Windows 95 operating systems. Each CD includes a loadable reader so specialized software is not needed to view the catalog. The black and white line art images are primarily Freehand 5.5 files, although some images are available as Illustrator 6.0 files. Using the digital photography file requires Photoshop or any other program that supports the EPS file format.

To request a copy of the Marshall Gas Controls CD or print versions of the catalog or line art, please call Stefanie Daily at (800) 877-2495, 8:30 a.m. - 5:00 p.m., Central Standard Time.

 Fold-N-Roll Stars at Music Festival

New Folding RV Dressing Room for the Stars

  Fold-N-Roll, the new hard-sided folding RV with a hydraulic pop-up roof, popped up at one of California’s biggest summer music and craft festivals. The Morgan Hill Mushroom Mardi Gras, which annually attracts more than 40,000 visitors during the Memorial Day weekend, requested to have two Fold-N-Rolls parked off stage to play the role as the stars’ dressing rooms. Irv Perch, manufacturer of the Fold-N-Roll donated the trailers to be used during the popular fund-raising festival.

The Fold-N-Roll was selected by the festival committee because of its compact size, comfortable interior and its solid wall design technology that makes it one of the most secure RVs built. The Fold-N-Roll was ideal for the outdoor event in part because of its ease in set-up. Lowered when not in use or for towing, the Fold-N-Roll stands less than 5 feet 5 inches and the roofline prevents the door from being opened, securing the unit overnight and while unattended. Hydraulically raised up to an inside height of 6 feet 5 inches in less than one minute, the trailer is quickly available when needed.

Designed with all the comforts of a much larger and costlier RV, the Fold-N-Roll became a restful haven for the head-liners performing at the festival. Stars of the festival, including The Lovin’ Spoonful, The Tubes, Eric Burdon (The Animals) and John McEuen (Nitty-Gritty Dirt Band) enjoyed the Fold-N-Roll’s roomy interior including two full sized beds, dinette table with couch seating, refrigerator, sink, stove, toilet, shower and generous storage and closet space for costumes.

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